The accounting staff of Welter Company has assembled the following information for the year ended December 31, 2002
Cash sales
$ 450,000
Credit sales
3,100,000
Collections on accounts receivable
3.100,000
Cash transferred from the money market fund to the general bank account 170,000
Interest and dividends received
80,000
Purchases (all on account)
1,650,000
Payments on accounts payable to merchandise suppliers
1,400,000
Cash payments for operating expenses
1,130,000
Interest paid
160,000
Income taxes paid
72,000
Loans made to borrowers
750,000
Collections on loans (excluding receipts of interest)
250,000
Cash paid to acquire plant assets
2,000,000
Book value of plant assets sold
540,000
Loss on sales of plant assets
60,000
Proceeds from issuing bonds payable
3,000,000
Dividends paid
260,000
Cash and cash equivalents, Jan. 1
700.000
Prepare a statement of cash flows. Place brackets around amounts representing cash outflows. Use the
direct method of reporting cash flows from operating activities

brainliest please

Explanation:

Prepare a statement of cash flows. Place brackets around amounts representing cash outflows. Use the

Statement of Cash flows

Cash flows from operating activities

cash received from customers

3,007,000

interest and dividends received

100,000

3,107,000

cash paid for merchandise

-1,520,000

cash paid for other operating expenses

-1,045,000

interest paid

-180,000

cash paid for income taxes

-95,000

net cash provided by operating activities

267,000

Cash flows from investing activities

Loans made to borrows

-500,000

Collections from loans to borrowers

260,000

cash paid for assets

-3,100,000

cash from sale of assets

575900

net cash provided by investing activities

-2,764,100

Cash flows from financing activities

proceeds from issuing bonds

2,500,000

payment of dividend

-120,000

net cash provided by financing activities

2,380,000

net increase in cash

-117,100

Cash balance, beginning

512,000

Cash transfer from money market to general bank250,000

cash balance, ending

644,900

(1) Compute the amount of collections from customers.

Cash sales $ 812,000 + Collections on accounts receivable 2,195,000 = $3,007,000

(2) Compute the amount of cash paid to suppliers and employees.

Cash paid to suppliers = $1,520,000 + 1045000 = 2,565,000

(3) Compute the amount of proceeds from sales of plant assets

Proceeds from sales of plant assets $

Book value of plant assets sold 655,300 - Loss on sales of plant assets 79400 = $575,900

the answer is a.

by: nicholas dooley

answer; sensory adaptation;